Legal changes from July 1 have already triggered increased interest among foreigners and overseas Vietnamese in the country's real estate market.
More than a month has now passed since the new Law on Housing and the Law on Real Estate Business expanded the right of home ownership to foreigners. According to Novaland Group, overseas Vietnamese have accounted for 10 per cent of transactions in its projects and they mainly target high-end apartments in a favorable location.
At D’.Le Roi Soleil, on the corner of Xuan Dieu and Dang Thai Mai in Hanoi’s Tay Ho district, the Tan Hoang Minh Group has also recorded significant interest from foreign homebuyers due to the project’s favorable location. “D’.Le Roi Soleil has already received 230 registrations for purchasing apartments,” Mr. Tran Nhu Trung, Deputy Director Managing of Tan Hoang Minh, told VET. “Among customers registering to buy our apartments are many from Malaysia and Singapore.”
From July 1 to August 8 the Phu My Hung Development Corporation has also conducted more than 100 transactions by overseas Vietnamese and foreigners in its projects.
The remainder of the year will start to show the effectiveness of the new laws, Mr. Marc Townsend, Managing Director of CBRE Vietnam, commented in the recent CBRE Vietnam report. “Foreign investors have complained in the past about how unfair the market has been for the past 15 years,” he said. “Now we will see whether they will really embrace it, whether they are actually happy with the new laws or whether they are still looking at how to get money in and out of Vietnam.”
The real estate market continued to see positive growth signs in July. There were about 3,550 successful housing transactions in Hanoi and Ho Chi Minh City, an increase of 3 per cent compared to June, according to figures from the Housing and Real Estate Market Management Agency under the Ministry of Construction.